If you are caught, you can be fined and the city will give the tenants an option to move in to the property at the previous rent rate.

All of the local banks are telling me that any financing options available would only be for a variable rate commercial loans.

I don't think I'll cash flow here, so I ran my numbers only on the money I needed to pull out to have no cash in.Financed amount is $100,000The monthly mortgage payment came out to be $435.59 per monthAt a 5.125% rate on a 30 year loan, I calculated a Net Renal Income came out to be $1,140 per monthI split the difference of the range and used $1,200 for an estimated monthly rent and added in a 5% vacancy rate.Expenditures came out to be $613.73 per monthI used an 11% property management fee, which was $125.40.I used $120 for capital expenditure reservesI used $60 per month for maintenance reservesProperty taxes were $225 per monthInsurance was $83.33 per monthThis put me at a Net Operating Income of $526.27 ($1,140 rent - $613.73 expenditures). 

You will need to make sure weekly, monthly, quarterly and annuals goals are met, vacancy is kept to a minimum by either increasing your renewal rate or always marketing, keeping a tight watch on all R&M/capex as well as managing your cash position. 

My lender put his money full 100% purchase because of me on this project and gave her no points and only interest rate. 

I just don't know if it's worth it because a mortgage would provide me with lower rates.

Quite often they want to do it themselves because how the business looks can really affect its success.Also, make sure to check what the vacancy rate is of similar properties.

Managing this rental so far has been easy and it rents fast.Now the SE PDX market seems to be growing at a slower rate than it was couple of years ago and if we don't sell before next year April, I would have to pay capital gain taxes.So my question is - Should I sell this house now and avoid paying capital gain taxes and re-invest the proceeds back when the market hits a downturn or hold on it this house for the long term?

But more importantly, if you are talking about a year and a half from now for that second refi, consider where mortgage rates will be then?

Alabama, in general, is producing jobs at amazing rates, so you’ve picked a solid canvas, IMO.